Rising heat-related deaths and health issues are increasing insurance claims, potentially leading to higher premiums across Europe.
Rating agency S&P has warned that Europe’s intense heatwaves are increasing claims linked to heat-related deaths and worsening health conditions, particularly among older people. This could impact life and health insurers, as well as reinsurers, leading to higher premiums for customers. The rise in heat-related claims is attributed to the growing elderly population, which is more vulnerable to the effects of extreme heat. As temperatures continue to rise, the financial burden on insurers is expected to grow, potentially affecting their profitability and stability.
Between 2004 and 2024, the share of people aged 65 and over in the EU rose from 16.4% to 21.6%, increasing vulnerability to heat stress. During the June 2026 heatwave, 9,000 of 10,650 excess deaths were among those 65 and over. S&P noted that heatwaves could compound financial risks for insurers due to their widespread and prolonged nature. The agency emphasized that the combination of aging populations and more frequent extreme heat events may lead to long-term challenges for the insurance sector, as claims related to heat-related health issues are likely to increase in the future.
Why it matters
Higher claims from heat-related deaths may force insurers to raise premiums for older people and health policies.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
Watch whether reinsurers adjust their financial protection models in response to rising heatwave claims.
This section reflects Dumpling editorial interpretation and is provided for context only.